'1%' CEO Confronts Protesters at Occupy Wall Street
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23-11-2012, 02:44 PM
'1%' CEO Confronts Protesters at Occupy Wall Street
Thought you guys might enjoy watching Peter Schiff (CEO of Euro Pacific Capital) speak to the self proclaimed '99%' at the occupy wall street movement.

Who's bringing the best argument to the table? you decide...
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23-11-2012, 10:46 PM
Thumbs Down RE: '1%' CEO Confronts Protesters at Occupy Wall Street
For those that don't think its worth their time to watch:

It's a guy going around attempting to make a "Libertarian" argument, that

'governmental institutions are a tool, and the rich and powerful are able to wield it to promote poverty, corruption, etc - there for we have to take away their tool (the government) by destroying it.'

I'm not entirely sure if this is a satire of "Libertarians", but it's close enough to get the point. And no, it's not worth the 2hrs watch.
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24-11-2012, 12:07 AM
RE: '1%' CEO Confronts Protesters at Occupy Wall Street
This dude is 100% correct.

And, as a person who works with student loans 5 days a week, I can also say that the government is at fault for enormous student debt and college tuition prices.

Don't believe me?

The government mandates EVERY college that can receive Title IV funding into a clause called 90/10. This means, that the student has to be responsible for at least 10% of their tuition. Keep in mind, this is MANDATED. We HAVE to follow this. If we don't meet our 90/10, all federal funding that we received in the award year have to be refunded... which pretty much means that the school goes bye bye.

Here's the fun part, though. The feds also make an UNDENIABLE allowance on loans to ALL students. Your qualifications can changes whether the loans are subsidized or unsubsidized; however, we are OBLIGATED to give ALL students the MAXIMUM about of loans that they can receive ($9.5k-$10.5K per award year).

So, what does this mean?

Well, let's say that a Medical Assistant program (about 12 months) costs $10K. This is the cost of the program. Bare. This is just the plain, stripped down cost of it. Nothing more. And this is a very cheap estimate.

So, a new student coming in can receive $9.5K in loans, and depending on their eligibility, up to $5550 in Pell. So, basically, the student turns a $5050 PROFIT from going to school. Enter 90/10.

In order to stay legal, the school HAS to make the student pay at least 10%. Right now, the student is making a 50% profit. So, at minimum, we have to increase tuition by 60%.

When you factor in drops, student turn over, and student success rates, you see around a 100% increase in tuition just to keep costs at an even keel.

So, that MA program I was talking about, instead of tuition being $10K it is now $20K. The student can receives $15050 in federal aid, but now owes $4950 in tuition. This is where it gets fun. That money is seen as cash to the federal government, so this is how schools survive 90/10.

The school usually have a private lender set up to provide yet another UNSUBSIDIZED loan to the student to front the rest of the tuition. Now, the student doesn't have to pay a dime while they are in school, but when they graduate they have to start paying off the private lender at an accrued interest rate and then state paying off the government.

So, the student has $15K in unnecessary loans - which usually result in default - which leads to the astronomically high student debt.

The point is: schools CANNOT deny these loans... likewise, if they want to stay competitive, they have to find a private lender to agree to the other loans... which usually don't get paid... which drives down the economy...

This is why there is an ever increasing tuition costs.

It's not the schools. It's the federal government.

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